Nearly 40% of small business owners blame chancellor Alistair Darling for the increasing burden of red tape in the UK, a study by online accounting software firm KashFlow has found.

Of the 680 business owners and accountants polled for the survey, a further 23% blame the European Union and 21% believe responsibility lies with the former chancellor and current prime minister, Gordon Brown

Ever-increasing amounts of red tape is costing companies time, money and countless nights sleep. As a result, over 75% of respondents said that red tape has negatively impacted their business.

Government promises to cut down on red tape have so far proved empty, as the tide of regulative restrictions continues to swell. Almost all respondents (94%) said they felt there is now more red tape than there was 10 years ago.

The managing director of KashFlow, Duane Jackson, said that smaller companies just don’t have the resources to comply with all regulations as easily as larger firms. “Consequently, staff members and managers are being lumbered with the burden of processing VAT and researching new rules and regulations regarding health and safety, number of work hours permitted, non-smoking rules and so on.”

However, it’s not all doom and gloom. Despite feeling let down by current systems, 80% respondents agreed that the UK still has fewer barriers to starting up a business than the rest of Europe.

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